BankThink: Bankers should be looking at the inverted yield curve with real alarm

In 2006, I embarked on my career as a banker, freshly armed with insights from experts such as Nicholas Souleles of the Wharton School of Business. I read an article by him entitled “Don’t Sweat the Inverted Yield Curve: No One Really Knows What It Means,” which published shortly after the yield curve inverted for the first time in five years. In it, he quoted a Wharton finance and management professor as saying, “I think [the inverted yield curve] sometimes portends a recession, sometimes not.”  The general consensus of the article: economic activity looks positive, don't worry about the inversion.

Yet, within mere months, the world was plunged into the depths of the "Great Recession."

To access the full article, see below: 

https://www.americanbanker.com/opinion/bankers-should-be-looking-at-the-inverted-yield-curve-with-real-alarm